Hansard, Friday, 2 March 2018

1 Dr Lim Wee Kiak asked the Minister for Trade and Industry (Industry) (a) whether any study has been done about Singaporeans' perception and awareness of local brands and products; and (b) how does the Ministry plan to instill greater pride for and awareness of local brands.

Mr Deputy Speaker, Sir, the development of strong design and innovation capabilities which enable the growth of distinctive local brands are key components of the Industry Transformation Maps (ITMs) in the lifestyle cluster.

While there have been surveys, like the Singapore Management University's Customer Satisfaction Index of Singapore and various surveys by private sector organisations, on consumers’ perception and satisfaction with various brands, these are not specific to Singaporeans' perception and awareness of local brands and products. We will consider doing such surveys as part of the work in implementing the ITMs.

The Government has been working with our key partners, such as the trade associations and chambers to raise awareness of local brands among Singaporeans. For instance, the Standards, Productivity and Innovation Board (SPRING) Singapore supported the recent collaboration between the Singapore Food Manufacturers' Association and Focus Network Agencies to help local food manufacturing companies feature their products through the Singapore Food Gifts Initiative at Changi Airport and amplify brand awareness. Participating companies were able to tap on SPRING Singapore's suite of assistance schemes, such as the Capability Development Grant, to support the packaging innovation, design and small batch production needed to commercialise these food gifts.

This year, SPRING Singapore will also be collaborating with the National Trades Union Congress' FairPrice and Nanyang Polytechnic's (NYP's) School of Business Management to launch a Retail Incubator Programme. With NYP's School of Business Management’s expertise in e-commerce and retail, and FairPrice’s supermarket channels and capital support, participating companies can develop key skills in retail management and have exclusive access to bring their products to market. To date, more than 20 companies have expressed interest to list more than 40 items under this initiative. We look forward to more companies coming on board.

The DesignSingapore Council (DSG) also supported the Textile and Fashion Federation (Singapore)'s collaboration with Boutique Fairs to organise Boutiques Edit, a shopping fair featuring local designers. The November 2017 Boutiques Edit showed a 50% increase in the number of attendees from the March 2017 edition, and quadrupled its sales, a signal that there is a growing appetite for designed-in-Singapore fashion and design. To nurture homegrown brands and profile design talent, JTC, SPRING Singapore and the Singapore Tourism Board will launch the Design Orchard initiative, with more than 60 brands on board, along Orchard Road by the end of this year.

The Government will continue to work with industry partners to support our local brands and products as part of the implementation of the ITMs.

Dr Lim Wee Kiak.

Mr Deputy Speaker, Sir, I thank the Senior Minister of State for her very comprehensive answer which included part of my intended supplementary question. I would just like to ask a further question. Current promotions of local brands are important in my opinion because if we want to encourage our local brands to go regional, they first have to achieve a strong foothold in our own market. This is a good testbed. My question is, apart from Changi Airport, Orchard Road and some of the localities the Senior Minister of State just mentioned, will there be plans to push out more to the heartlands, to the heartland malls and so on? These locations are key to the local domestic market. I also wish that Singaporeans can support our local brands and things made in Singapore more. It is not a step towards protectionism, but it is a step for us to encourage our small and medium enterprises. And hopefully, more new ideas and innovations can prevail.

I thank the Member for the supplementary question. Indeed, we see the heartlands as a very good source of potentially strong brands that can do Singapore proud. I am also pleased to say that we are working very closely with the Federation of Merchants Association Singapore on how to rejuvenate retail in the heartlands and, we hope, in the process, continue to groom strong brands. I also hope that Dr Lim Wee Kiak can stay for the Ministry of Trade and Industry's Committee of Supply later today, where I will be speaking more on this particular initiative.

Order. End of Question Time. Introduction of Government Bills.

[(proc text) "to amend the Legal Profession Act (Chapter 161 of the 2009 Revised Edition) and to make related amendments to the Supreme Court of Judicature Act (Chapter 322 of the 2007 Revised Edition)", (proc text)]

[(proc text) presented by the Senior Minister of State for Law (Ms Indranee Rajah) on behalf of the Minister for Law; read the First time; to be read a Second time at a Sitting of Parliament on or after 19 March 2018, and to be printed. (proc text)]

[(proc text) "to require the reporting of, and the payment of a tax in relation to, greenhouse gas emissions, and to make consequential and related amendments to the Energy Conservation Act (Chapter 92C of the 2014 Revised Edition)", (proc text)]

[(proc text) recommendation of President signified; presented by the Minister for the Environment and Water Resources (Mr Masagos Zulkifli B M M); read the First time; to be read a Second time at a Sitting of Parliament on or after 19 March 2018, and to be printed. (proc text)]

[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]

[Deputy Speaker (Mr Lim Biow Chuan) in the Chair]

Supplementary Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018, contained in Paper Cmd 14 of 2018. As there are no amendments, I propose to take the Heads of Expenditure en bloc. I will first take Heads E, I, Q, S, V, W and X of the Supplementary Main Estimates.

[(proc text) Question, "That the sums stated for the Heads of Expenditure as shown on page 5 of Paper Cmd 14 of 2018 stand part of the Supplementary Main Estimates," put and agreed to. (proc text)]

[(proc text) Question, "That the sum of $339,311,600 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018 contained in Paper Cmd 14 of 2018," put and agreed to. (proc text)]

[(proc text) Resolution to be reported. (proc text)]

[(proc text) Question, "That the sums stated for Heads I, P and S as shown on page 7 of Paper Cmd 14 of 2018 stand part of the Supplementary Development Estimates," put and agreed to. (proc text)]

[(proc text) Question, "That the sum of $87,153,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018," put and agreed to. (proc text)]

[(proc text) Resolution to be reported. (proc text)]

[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]

Senior Minister of State Indranee Rajah.

Mr Deputy Speaker, I beg to report that the Committee of Supply has come to certain resolutions.

[(proc text) First resolution to be reported, (proc text)]

[(proc text) "That the sum of $339,311,600 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018, contained in Paper Cmd 14 of 2018." (proc text)]

[(proc text) Second resolution to be reported, (proc text)]

[(proc text) "That the sum of $87,153,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2017 to 31 March 2018, contained in Paper Cmd 14 of 2018." (proc text)]

Mr Deputy Speaker, I beg to move, "That Parliament doth agree with the Committee on the said resolutions."

[(proc text) Question put, and agreed to. (proc text)]

[(proc text) Resolutions accordingly agreed to. (proc text)]

[(proc text) Order read for consideration in Committee of Supply [2nd Allotted Day]. (proc text)]

[Deputy Speaker (Mr Lim Biow Chuan) in the Chair]

Chairman, I beg to move, "That the total sum to be allocated for Head J of the Estimates be reduced by $100".

Singapore's need to develop its own defence capabilities came almost as suddenly as our Independence. Shortly after our Independence, the British forces who had been stationed here announced they would be pulling out ahead of schedule and Singapore would be responsible for its own defence thereafter.

This precipitated the start of National Service in 1967 and the focused development of Singapore’s armed forces. As a small country, security is always a challenge. If it comes to a war, it is generally assumed that a big, well-resourced country will prevail over a small one.

Unlike our neighbours who had larger populations, larger land mass and natural resources, when Singapore gained Independence, we were poor, had many pressing needs and competing challenges. But the Government of the day knew that from the day we started, we needed a strong defence force and that there would be no economic future, no security without one. Thus, they invested in defence even though it was difficult.

The building of a strong defence force was also coupled with the building of strong defence ties and the Five Power Defence Arrangements (FPDA) with Malaysia, Australia, New Zealand and the United Kingdom (UK) in 1971 was one of the earliest defence arrangements we entered into. This has been built on later with further important defence and training arrangements, including with other regional countries and big powers.

These alliances have been built in the mutual best interest of all involved and Singapore needs to be a strong and valued partner in order for other countries to want to form alliances with us.

Although our defence force remains strong and credible and our defence alliances strong, the security environment remains fraught with risks and uncertainties. As we had discussed in the earlier debate on foreign affairs, these threats are wide ranging and serious.

The threat of terrorism continues to spread with growing incidents of radicalised individuals and fighters returning from the Middle East to the region. Attacks have taken place in major European cities but, closer to home, in Indonesia as well.

The Korean Peninsula saw aggressive nuclear testing by North Korea barely a few months ago, and while ties remain warmer now, the nuclear risk remains. Matters in the South China Sea have also calmed down a little, but there is no clear resolution in sight for the differences here, though, hopefully, parties can agree upon a code of conduct.

And today, security threats are increasingly taking on new forms, including self-radicalised terrorism and cybersecurity. These are complex and unpredictable, and take place below the threshold of war, and we may have to invest adequately to deal with such emergent threats. While these threats linger, they take place against a backdrop of a risk that the US may reduce its role in the region. So, it is clear that we must continue to invest in defence.

Our Pioneer Generation had the foresight to invest in defence, and the "peace dividend" we have enjoyed over the last 50 years is the backdrop which has allowed Singapore to grow and thrive. Today, we are one of the wealthiest countries in the world.

Given our small size and the existential need for defence, defence spending has been a significant part of our Budget. Defence expenditure has also been rising in the region in the face of growing security concerns, meaning all our regional neighbours are also building up their armed forces.

As forecasted in the Budget Debate earlier, we will be moving into a period when our population will be ageing and our needs for social spending will be rising at the same time. Some have suggested, happily, not inside this House, cutting the defence Budget, a move that I would find worrying, given that security and defence are existential for us. What are Singapore's security plans in the face of the threats we face, and is our defence spending going to be adequate and sustainable in the face of these threats?

Mr Chairman, as a responsible member of the international community, Singapore has long contributed to the international peacekeeping and humanitarian assistance missions around the world. And just last year, the Singapore Armed Forces (SAF) deployed Chinooks and personnel to aid in the Hurricane Harvey relief operations in the US, sent an additional medical team to the defeat-the Islamic State of Iraq and Syria (ISIS) coalition in the Middle East, and sent humanitarian aid to the Philippines and Bangladesh. Will SAF continue to support such global security and international peacekeeping efforts?

Mr Chairman, terrorism has continued to pose a major threat to the peace and stability of our region. The scale of terror threats in our region has grown. Last year, about 900 ISIS-linked militants took over the southern Philippine city of Marawi and displaced over 400,000 Marawi residents. It took a concerted effort between the Philippine Armed Forces and the Philippine National Police to recapture Marawi following five months of fierce fighting involving airstrikes and artillery fire.

Terror groups today have also operated with increasing coordination and sophistication, with operational linkages spanning across national borders. The Maute group militants behind the Marawi siege had links with pro-ISIS cells and individuals in the region, and leveraged existing smuggling routes to move funds, people and arms through ungoverned spaces in the region.

The Marawi siege in the Philippines showed us how militants can effectively organise themselves and pose a credible threat to homeland security forces. This underscores the importance of improving synergies across the whole-of-Government to ensure that there is a coordinated response to terrorist threats.

As such, how is the SAF coordinating with other Government agencies to prevent and respond to the threat of regional terrorism today?

The Ministry of Defence (MINDEF) has stated that some 18,000 National Servicemen (NSmen) will be put through counterterrorism training annually. There will also be other initiatives to help Singapore negotiate the current climate that we live in, which includes the Special Ops taskforce; the Army Deployment Force and, of course, the setup of the Island Defence Training Institute.

They are, indeed, major changes and they come with strategic investments and commitment as well. What kind of scale of hardware and technological acquisition are we looking at? How are our plans able to cover our land and sea borders as well as our air space in terms of attacks and threats?

We need to be ever ready to handle these extremely volatile situations, and how do we ensure that our men are all psychologically ready, knowing that they can be called upon anytime to protect Singapore?

MINDEF also has broad goals for the ASEAN Defence Ministers’ Meeting (ADMM) chairmanship. Can the Minister also share with us some of these, which include collaboration with ASEAN counterparts, including SAF and other Armed Forces that have got experience in dealing with a siege like the one in Marawi?

Sir, with the world so interconnected and our lives completely changed with the Internet and digitalisation, almost all electronic items can be remotely accessed and controlled, such as our transport, financial and security systems, our power plants and many more.

It is a perfect cyber storm brewing. Imagine all our traffic light controls go haywire, with multiple accidents on the roads, our roads will become a logjam. Airplanes above our heads can become weapons of mass destruction, like the 9-11 scenario. Our stock market and financial systems can be brought to a complete halt and all electronic financial transactions going astray. Our communication devices could be hacked and paralysing the entire country, making any rescue and recovery services impossible. This is a doomsday scenario that we frequently see in a Hollywood movie. Can this reality be real one day?

We read about many incidents of cyberattacks and breaches of security and cyber espionage around the world. How prevalent are such attacks against Singapore, and how vulnerable are we? What are we doing to protect Singapore from cyberattacks?

In recent years, cyberattacks have grown to be a major security concern. In 2015, it was reported that the hackers had successfully compromised the information system of energy companies, leading to the temporary crippling of Ukraine's power grid. Ukraine was again targeted in June 2017 with ransomware disrupting Ukraine's financial, energy and government sectors.

At home, our Government education institutions are known to be hit by cyberattacks. Last year, our businesses, including several shopping malls, were affected by the "WannaCry" worm. Fortunately, Singapore was less affected by the "WannaCry" worm, compared to some other countries.

From these examples, it is clear that cyber-related threats can severely affect and disrupt Singaporeans' way of life. My question to the Minister is how prevalent are such attacks, how vulnerable are we and what is MINDEF doing to protect Singapore from cyberattacks?

Sir, the changing security environment has birthed a more diverse range of dangerous and non-conventional threats to Singapore, especially within the cyber domain. For example, the growing availability of sophisticated tools on the Dark Web, designed to thwart secure systems, has greatly heightened the impetus to test and strengthen the security of our existing digital systems. At the same time, in our current fiscal climate of prudence, there is also a strong motivation to exercise good fiscal judgement.

Last year, MINDEF started its Bug Bounty Programme where they invited a select group of white-hat hackers with the required skills and tools to attack their systems. This, I agree, is a sensible move to test its systems as it will be far cheaper than hiring a dedicated commercial cybersecurity vulnerability assessment team and potentially reveal weaknesses that may not be surfaced, given the very individual nature of white-hat hacking. Furthermore, efforts into strengthening our cybersecurity are always welcome if it means a greater defence of our borders within the space of cyber technology.

These hackers were allowed to test eight MINDEF Internet-facing systems to identify any code bugs and vulnerabilities. Could the Minister of Defence provide an update on the Bug Bounty Programme? Is the Bug Bounty Programme a one-off exercise or an ongoing engagement? How does MINDEF's efforts fit into our national cybersecurity ecosystem?

The Finance Minister has announced the Budget growth cap cut to 0.3 times GDP growth in this year's Budget, following on from the 2% downward adjustment to the budget caps of Ministries and Organs of State. This highlights the current fiscal climate prudence as we face the "new normal" of slower growth rates.

At the same time, we have witnessed an increase in the variety and danger of non-conventional threats to Singapore's security, in particular, in the cyber domain and by terrorists.

MINDEF and SAF have invested resources to build our capabilities in these fields in the last few years. Given the increasingly tight fiscal climate and the widening spectrum of threats that MINDEF and SAF now has to defend against, some worry that we may spread our defence dollars too thin. To fund the development of capabilities in emerging fields, MINDEF would likely have to exercise more prudence and possibly undertake some cost-cutting measures.

Could MINDEF elaborate on the specific prudence and cost-cutting measures that it is undertaking?

Sir, the main mission of SAF is to defend Singapore. Today, Singapore faces new threats, such as terrorism and cyberattacks, in addition to the conventional threats. Therefore, it is crucial that we transform and build new capabilities in our defence force to deter any potential aggressors and overcome any aggressors with a swift and potent defence force.

Sir, technology and intelligence play an important part in strengthening our defence and enhancing our SAF's capabilities. In 2017, MINDEF announced that it will set up a Cyber Defence Organisation and train 18,000 soldiers per year in land, sea and air operations to counter terrorism. These are good initiatives but do we have the manpower to do so in the future, especially when we are faced with a low birth rate?

Sir, furthermore, with an ageing population, many of our Operationally Ready NSmen (ORNS) will be over 60 years old in 10 years' time. This will significantly grey the profile of our defence force. Many of these older ORNS may not be so tech savvy and will face difficulty in catching up with new technologies adopted by SAF. Thus, upgrading of these older ORNS to integrate into the defence force will be challenging.

Sir, last year, the Minister for Defence spoke about the "Next Generation (Gen) SAF" that will be positioned for the future, and able to deal with threats in the 21st Century. In this regard, I wish to seek clarifications from the Minister on the following: first, how SAF has leveraged technology to better equip our defence force; and second, update on the operational readiness of SAF for future threats.

Mr Lee Yi Shyan. Not here. Ms Jessica Tan.

Mr Chairman, with Singapore's geographic location and size, we face several undisputable strategic realities, including our lack of strategic depth and weight, lack of natural resources and small population. We are critically dependent on the free flow of external trade, even as the open nature of our economy leaves us vulnerable to shifts and turbulence in the external environment.

Given our vulnerabilities, we need to rely on both a strong SAF, as well as astute diplomacy, to protect our interests. In particular, our involvement in regional security architecture is critical to fostering trust and cooperation and is essential to shaping a benign security environment within the region where Singapore can continue to grow and prosper.

The ASEAN Defence Ministers' Meeting (ADMM) is the highest defence consultative and cooperative mechanism in ASEAN aimed at promoting regional peace and stability through dialogue and cooperation in defence and security within ASEAN and between ASEAN and dialogue partners.

Amidst the growing threats from extremists and the volatile geopolitical environment in the region, Singapore, as Chair of ADMM this year, is well-placed to advance the security interests of the region and Singapore. In this regard, what are some of the initiatives that MINDEF is undertaking as ADMM Chair to achieve this?

Chairman, Sir, good progress is being made through the ADMM and ADMM-Plus frameworks to increase confidence among member countries and which lower but not eliminate the possibility and prospect of outright hostilities in the region, particularly over flashpoints, such as the South China Sea.

The upcoming ASEAN-China maritime exercise is a good example of the work that goes on to build confidence amongst each of the partner nations. In particular, the adoption of the Code for Unplanned Encounters at Sea (CUES) has raised hopes of its implementation even if an agreement amongst all the ADMM-Plus partners may prove to be harder to secure than the agreement of the ASEAN nations.

Is there any realistic prospect for a CUES framework for unplanned encounters in the air, as intimated by the Defence Minister last month, in view of fatal incidents in the past?

As ADMM Chair, it was reported that Singapore plans to strengthen cooperation and build resilience among the ASEAN member states and eight ADMM-Plus countries. These include plans to increase counterterrorism collaboration and raising capabilities to combat chemical, biological and radiological threats.

Separately, under the "Our Eyes" initiative, senior officials from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Brunei will meet every two weeks to swap information on militant groups and develop a common database of violent extremists. Can the Minister clarify if there is any scope for such cooperation to create economies of scale for SAF and achieve some savings for MINDEF?

Finally, Minister, in view of the importance of the ADMM-Plus frameworks and the reality of a more multipolar world, is there any prospect for making the ADMM-Plus a yearly meeting instead of once every two years, as it is currently? What has been the reception to this proposal by the ADMM and ADMM-Plus partners?

Chairman, Sir, the Minister for Finance mentioned that tensions in the South China Sea could affect investor confidence and, therefore, stability and growth in the region. It is, therefore, strategic for Singapore to minimise the tensions and prevent incidents and accidents from escalating into a serious event in the South China Sea.

Singapore is the ASEAN Chair this year and thus leading ADMM and ADMM-Plus, which involves another eight other powers, including China and the United States (US). We have a timely opportunity here to establish the framework to minimise the tensions. It is timely because Singapore is a non-claimant stakeholder in the settlement of the South China Sea disputes and has strong bilateral ties with many of the other stakeholders, including ASEAN countries, China and the US.

It is also timely because the South China Sea disputes seem to be entering into a more rational phase of negotiation and balance of power, after the initial emotive phase occasioned by the jostling for territory.

In 2013, China and the US took part in a joint training exercise off Hawaii. In 2014, both countries, along with other South China Sea stakeholders, signed the agreement on CUES. CUES is an excellent platform to work with to avoid the escalation of any incident and to maintain peace and stability in the South China Sea. On 6 February this year, MINDEF issued a press release outlining the ADMM's three areas of focus for 2018 after the ADMM retreat in Singapore. One area is to affirm the importance of CUES on the sea and in the air. This is a worthy goal but, unfortunately, the press release was short on details about this area. Would the Minister elaborate on how the ADMM-Plus would be used to reaffirm the importance of CUES?

It was also announced that ASEAN will be conducting an inaugural maritime exercise with China at the end of the year. This is excellent, as the US-China maritime exercise in 2013 fostered trust that led to the CUES agreement in 2014. I would like to ask the Minister whether the ASEAN-China maritime exercise will involve the testing and practice of CUES in the South China Sea and whether a similar exercise can be conducted under the aegis of ADMM-Plus. I am asking the latter question because 2018 is the beginning of the third ADMM-Plus three-year cycle and there were already four live exercises held in the last cycle which were useful for deepening regional security cooperation.

Minister for Defence.

Mr Chairman, let me thank the Members for their continued support to build up a strong defence for Singapore by voting for the financial policy of the Government yesterday.

This debate and the next on the Presidential Address after Parliament reopens are crucial. For this debate, as expected, any proposed tax increase will attract attention. If it did not, we would be in a different world, a surreal one. But astute Members of Parliament (MPs) have pointed out that the financial Budget is but a means to an end.

Indeed, apart from the financial scrutiny of Government spending and revenue, the debates will set strategic directions for Singapore over the next 10, 20 years and beyond. And these core issues are addressed at a crucial juncture, as we transit to a 4th Generation (4G) leadership that must forge support from a generation of Singaporeans with perspectives and memories significantly different from the Pioneer Generation, and even that of their parents, because they were born when Singapore was First-World and they did not experience the Third-World Singapore. As we deliberate on these key issues, we have to decide what we must never let go, lest we weaken the foundations of our growth, and what we must change to keep relevant with the times. Those decisions from these two debates will affect every Singaporean, young or old, right or wrong.

Every Ministry, therefore, including and, especially defence, which takes up a large share of Government spending, must deal with these core issues. That is the core debate. Mr Vikram Nair captured the essence when he asked of my Ministry what are our security plans in the face of wide-ranging threats and risks, and if our defence spending is adequate and sustainable. He used the word “existential” twice. And he is correct.

Should we continue to put defence spending as a priority? Because, after all, we have had peace for 50 years and more now. Our relations with our neighbours are good on all sides. We have formed strong partnerships, as Members have pointed out, with major powers. How much should we invest in building a strong SAF and how much can we afford?

The answer to these questions by previous generations was plain, as it was unwavering – defence was a top priority and they would invest heavily into building a strong defence, a strong SAF, no ifs or buts.

But let me make one fact clear. Past generations did so even when there were many competing needs. We talked about our rising needs but, past generations, as a Third-World country, in Singapore, our needs then were dire and everywhere – houses, schools, hospitals, roads, public facilities, jobs – all in short supply. Because our military capabilities at Independence were next to nothing, the Government of the day had to make hard decisions – every dollar spent on building up the military was a dollar taken from other needs. And yet, they paid the price to build up a strong SAF.

Why? Mr Lee Kuan Yew and the Pioneer Generation, who lived through Singapore as a British colony, under Japanese occupation and as part of Malaysia, held a deep conviction on self-determination through a strong defence.

At the National Day Parade (NDP) which Members here attend, we replay a particular clip of Mr Lee Kuan Yew. It is a very stern admonition and, in this coming NDP, I invite you to listen to it again. It was uttered in 1967 when NS was introduced, "If you, who are growing up, do not understand that you have got to defend this, then I say, in the end, we will lose. Other people will come, smack you down, take it over." I cannot say it as harshly as Mr Lee because that generation lived through difficult times. It is just unnatural for us, but when he says it, and when the Pioneer Generation says it, it is so authentic. Harsh words for harsh times, but ever so necessary. Not only for that generation, but I think for every generation. So, listen to that clip again this year.

With that deep conviction and sacrificial commitment, we, today, have a modern and professional SAF. From two infantry battalions – which, if you read Mr Lee's memoirs, were still under Malaysian command even after we separated – we now have an Army, combined arms divisions, fully manned and able to move at short notice.

Earlier this year, you may or may not have noticed, we activated a mass mobilisation exercise (MOBEX). There was not much fanfare. In fact, it may have gone unnoticed. But in a few hours, we were able to rapidly assemble and equip 8,000 men, moved munitions to them, we used new ways of doing it. Many Members here are NSmen and had gone through MOBEX. As they went to the counters, these were automated counters, where a camera takes a picture of you, recognises you, issues you a slip to say which company and platoon you go to, and what your role is, and what weapons you need to draw. But you actually do not have to draw the weapons because, at the same time, when it is activated, we did not cheat, we activated both sides, from our ammunition storage facilities, they are activated. And they pushed weapons, platforms, to meet up with the men. Within a few hours, 8,000 men. No mean feat anywhere. That should give a lot of confidence to Members in this House and Singaporeans outside.

The Republic of Singapore (RSAF) commemorates its Golden Jubilee this year. But when it started, we had two Cessnas. We did not really own them. We leased them from the Singapore Flying Club. Today, we have a comprehensive fleet of fighter, transport, surveillance aircraft and ground-based air defence systems that protect our skies 24/7. And when I say that, it means that we have pilots on standby. Because after 9-11, we took that threat seriously. If there are planes that come to us unplanned, our fighter planes are mobilised. It takes a while to get mobilised, so our chaps are there. From time to time, we gently guide errant, sometimes, lost pilots, down to the field. But you never know when there might be a real attack, just like 9-11.

Our Navy started with two wooden hull boats, probably sinkable if attacked. We now have a modern Navy of Littoral Mission Vessels (LMVs), frigates and submarines that protect our waters and maritime hub.

The commitment of previous generations to build up a strong SAF was not merely through words or aspirations. It required substantial financial resources from the Government and the people. But that was not the only and, in fact, not the most precious resource they had to give. They gave of themselves, as every Singaporean male, as every male MP in this House who has done NS, has done so, through NS, with the full support from family and employers.

The results of that unequivocal commitment are plain for everyone to see – to Singaporeans, to our neighbours and, indeed, globally – an SAF today that is able to defend Singapore, but beyond that, an SAF that has contributed to global security. As Mr Vikram Nair said, how do we show that we are a valued partner?

It went beyond our wildest imagination that SAF troops and assets, as Mr Teo Ser Luck pointed out, were helping in Hurricane Harvey in Texas and, before that, Hurricane Katrina; or could be deployed as peacekeepers in Timor-Leste or against terrorism in Afghanistan and Iraq; against pirates in the Gulf of Aden; and in humanitarian efforts in Aceh and Nepal. Who would have thought of it when SAF was started more than 50 years ago?

Yes, we will continue to do this because the partnerships forged from playing our role internationally are important in dealing with transnational threats that affect our own security. We are not playing "good guy", to be honest. It raises our stakes, our value to others who want then to help us as we deal with transnational security threats.

It has been the steady investments in defence spending that enabled these achievements by a strong SAF, both locally and internationally. This is a Committee of Supply (COS) debate. So, I think some details of actual financing are appropriate. We have handed out, with your permission, Mr Chairman, charts and these are also shown on the screens.

The first figure shows our defence spending for the last 30 years. First off, in blue, is the percentage of Government expenditure – how much MINDEF spends as a part of Government expenditure. At our height, you will notice that we spent almost a third of every dollar the Government spends. But with the SAF modernised and doing more with people and technology, defence spending, as a proportion, dropped substantially, starting around a decade ago. It is now about 19% of Government spending.

So much for Singapore's spending, but defence must always be seen in perspective. What you spend is never as important as what everyone else spends. So, let us see the next slide – what is the defence spending by countries around us? I have chosen just to focus on ASEAN but I think probably the same can be said of Asia, ex ASEAN and Singapore, and even more.

Figure 2 shows that we had kept pace with ASEAN spending until about 2006. In the last decade, our ASEAN neighbours have been spending more. These are nominal absolute spending. In the last decade, our ASEAN neighbours have been spending more to modernise their defence capabilities even as their economies grew. The gap between Singapore's spending compared to the rest of ASEAN has increased, but Singapore need not increase its defence spending radically now to play catch-up. Do not worry. We do not have to do it.

As I have said in this House previously, we can maintain the SAF's capabilities with a defence spending that roughly keeps pace with inflation of around 3%-4% increase each year. And even for the next decade, MINDEF does not foresee any spike in defence spending. Obviously, this will not apply if there are exigencies or unexpected scenarios. For instance, if there is a terrorist attack or if the security environment deteriorates, our agencies will have to spend more to protect Singaporeans.

And after the next decade, I think it would be prudent for the Government of that day and this House to reassess the security threats and the military spending, and the capabilities of other countries and plan ahead. So, if Members can remember and are still in this House 10 years hence in 2028 and beyond, please remember this gentle admonition, sound out warnings if you think necessary, for those of you privileged to be in this House.

Two crucial lessons learnt from our experiences as well as that from negative examples from other countries who went the other way, and they are: first, the best time to prepare for trouble is during peace; second, in the long run, steady investments into military capabilities maintain peace through deterrence and result in more effective outcomes. It is actually the most efficient yield for defence investments. In other words, even if you spent the same dollar amount over a defined period and one was gentle and smooth, and the other went up and down, the most effective yield is continuous steady investments, and I will tell Members why, by examples, which many European countries have learnt in bitter ways.

I recently spoke of how Lithuania did away with NS after the Cold War, but has now to reintroduce it following the annexation of Crimea. But it may not be possible. Just think – one Defence Minister decides, "alright, National Service is no longer necessary". The same one, or a few years later, another one decides, "let us reintroduce it". Is it possible? Certainly not in time to deal with an imminent crisis.

Denmark announced in October last year that it would now increase defence spending by 20% over the next five years. You can quickly appreciate the pain it will cause their population that the Finance Minister of Denmark would say, "I have to raise Goods and Services Tax (GST) by 2% just to pay for my defence." Painful.

France, even a bigger problem. It unveiled a bill last month that would increase its spending on its armed forces by more than 40% by 2025 because Europe has now got threats. People are asking France and Germany, who are the two largest powers, to do more. They are going to up it. President Macron, to his credit, believes it should be done, but they have to up their defence spending by 40%. I have not calculated how much it affects their defence spending. I think France now spends €34 billion. It would have to go up to €50 billion, an increase of €16 billion in seven years. Not only a 2% increase in GST would help; probably a 3%, 4% or 5% hike in GST just to pay for the increase in defence spending.

Germany, even with its troubled past, is now asked by the European Union (EU) states to do more militarily. That debate is over. I have attended the Munich Security Dialogue, as Defence Ministers in Singapore have, for the past decade or more. And, at that time, there was almost a schizophrenia. "We think we want Germany to do more but with your troubled past, maybe you should not do more." That debate is done. Germany, you must do more. But after 25 years of cuts to the German defence budget, the German military – the Bundeswehr – is underfunded, with entire weapons systems unusable, because they either lack spare parts or have been poorly maintained. By the German government's own assessment, less than half of Germany's submarines and planes are operationally ready. The platforms are there but only half can be activated.

When the Aceh tsunami occurred, we activated three of our four Landing Ship Tanks (LSTs). It happened on Boxing Day – no way you could have had prior warning. On activation, all moved – 75% of the assets of that particular platform. The fourth was in the Gulf, as Deputy Prime Minister Teo has reminded me. So, all four were out. If we had to send another one, we would have to borrow it.

The Bundeswehr will need many years to modernise its platforms and make up for lost time.

When I share these lessons, I say these are salutary lessons that we must voraciously imbibe, because someone else has paid to learn them. That is the cheapest cost to any country.

We intend to keep our defence spending steady despite countries around us spending more and against wide-ranging security threats. But we have to prioritise and focus and optimise our resources.

Some Members have asked about counterterrorism – Assoc Prof Dr Muhd Faishal, Assoc Prof Fatimah Lateef. SAF takes terrorism very seriously, so much so that we have to reorganise, train and equip differently. Members have pointed out, including Dr Teo Ho Pin, how we now train. We have the capacity to train 18,000 SAF NSmen for homeland security.

We learned very valuable lessons from Marawi, another painful lesson that someone else learnt. So, we went there. We absorbed the lessons. I made a trip, Deputy Prime Minister Teo made a trip recently, where they found out and they admitted that they underestimated the problem, both the number of fighters and how well they were equipped.

The terrorist fighters there were equipped. Snipers had good weapons, heavy machine guns, and they even had anti-tank weapons. The terrorists conducted urban warfare against soldiers and policemen of the Philippine authorities who were not trained for that kind of fight. That is why it took five months for the Philippine armed forces and homeland security to dislodge the militants from that city. And this, after many lives lost and the city devastated. I think the bill they have recently estimated will cost about US$2 billion. This is just one small city. The experiences there confirm that SAF is on the right track in building up our counterterrorism capabilities. In the span of a year, we have trained some 18,000 servicemen for homeland security and we started the new institute called the Island Defence Training Institute. I have talked about Singapore Armed Forces Training Institute (SAFTI) City last year. When completed, it will allow our soldiers to train more realistically for homeland security and counterterrorism because it will be a different Pasir Laba that you and I were used to. Buildings, I do not know how high you can build it, but at least higher than what we have now, and to teach them how to fight in that kind of scenario.

Members rightly pointed out that we have to do more with other Government agencies to respond to these terror threats. We are working together with the Police's Frontline Policing Training Centre. We will conduct joint training and equip NSmen with the skills to perform these homeland security operations. At sea, various agencies are coordinated, whether it is the Navy, Police Coast Guard, Maritime and Port Authority (MPA) or Immigration and Checkpoints Authority (ICA), so that we keep our waters safe.

But as much as we prepare at home, Singapore needs to be part of the international effort to deal with terrorism at its source. That is a sound strategy because, if you do not do that, you are just dealing with the problem too late and you allow the problem to mushroom.

We did that against Al-Qaeda, from 2007, in Afghanistan, after which the threat has dissipated for now. Our SAF troops have been deployed in Iraq since 2014 against ISIS and with considerable progress. The coalition effort, led by the US, has taken Iraq back from ISIS control. US Secretary of Defense James Mattis wrote to me recently to ask Singapore to commit more resources for the next phase of consolidation after our hard-won victories. Cabinet has approved for Singapore to maintain our commitment to counterterrorism globally, for our own interests. I am announcing today that the SAF will further deploy troops to Iraq later this year. We will send SAF troops to help train Iraqi Security Forces to counter improvised explosive devices, as well as in tactical weapons and combat tactics.

As Assoc Prof Fatimah Lateef suggested, we need to work with ASEAN on counterterrorism, and some others have pointed that out too, including Mr Pritam Singh and Mr Low Thia Khiang, especially because the risk of foreign fighters leaving Iraq and Syria has gone up. So, paradoxically, as the problem there diminishes, they run away; and they come back, whether it is Malaysia, Indonesia, the Philippines or even Singapore.

The Philippine Special Operations Command came to Singapore last December for a two-week professional exchange and our offer to the Philippines Armed Force to use our unmanned aerial vehicles (UAVs) for surveillance remains open. Deputy Prime Minister Teo, when he visited Philippine leaders, reiterated that offer, too, recently. SAF stands ready to join the Sulu Seas patrol when invited. As ADMM Chair, we recently proposed a counterterrorism framework – there were many programmes but we felt we needed a comprehensive framework and we devised the 3Rs – the equivalent to reading, writing, arithmetic. Rather, it is "Resilience, Response, Recovery", to coordinate our responses to prevent, deal with and recover from attacks.

Dr Lim Wee Kiak asked about the growing cyber threat, indeed, a transnational threat with effects that could be devastating as physical attacks, whether it is power grids, whether it is financial grids, whether it is hospitals, and so on and so forth.

At the whole-of-Government level, Deputy Prime Minister Teo chairs our Coordinating Inter-Ministerial Committee, the Security Policy Committee. But at the Ministry level, we are responsible for our own Ministries as well as the ecosystem in which that Ministry is in charge of.

Members have asked who the attacks come from, how often and whom they are targeted at. I think Members can guess at the answer. The attacks are conducted by freelancers, as well as organised state and non-state actors. Senior MINDEF and SAF leaders, as well as departments handling sensitive information have been deliberately targeted, for example, by "spear-phishing". Those of you in information technology (IT) will know what this is.

In other words, you get innocent-looking emails addressed to you, but it contains malicious software. If you click on the attachment, or sometimes even when you click on the email – I do not think they have reached a stage where you look at it and the malicious software might come. They have not succeeded, but they will keep trying.

As we do in the physical arena, MINDEF adopts a multi-layered approach to cyber defence, including the ultimate step of physically separating sensitive systems from the Internet. Internally, there is a system – we do not want to talk to you, please do not come in. Sensors monitor internal networks 24/7. We have "red teams” which are testing for vulnerabilities.

Mr Zainal Sapari asked about our Bug Bounty programme. Thank you for affirming it. I thought it was a good idea. It attracted 260 white-hat hackers, all bona fide, and improved our systems at relatively low cost. We have shared lessons with other agencies, like the Government Technology Agency (GovTech) and the Cyber Security Agency (CSA), and the results are encouraging. I do not think it is a one-off. It may not be an exact mould, but we will think of these ways to crowdsource. For the Internet, we can do it; we can crowdsource and actually leverage off that connectivity.

As Members have pointed out, we will build up a cyber force with more SAF regulars and full-time staff. We will also use NSmen. This year, we will take in the pilot batch of full-time National Servicemen (NSFs) under the Cyber NSF Scheme. For those of you who have friends, children or children of friends who are interested and suitable, tell them about this. For those interested and suitable, we will offer them regular contracts of varying durations. If they accept, we will also invest more on training them. We will also set up a cyber defence training and exercise infrastructure to train them. So, this is long term, needs a long-term plan, and we have begun.

Mr Teo Ser Luck asked how we can be prudent in spending, and he is spot on. We know our resources are limited. We have to be prudent, but we will not compromise. SAF will not compromise our defence capabilities but we have found ways to optimise resources. We want to stretch every dollar, where we can.

We have used innovation and better work processes. SAF saved $200 million last year, the highest in the last four years. I think we can do more. For instance, our new LMVs will cost around $65 million less for the whole fleet to maintain across their lifetime. They replaced the Patrol Vessels. LMVs are much more capable than the Petrol Vessels but will cost less. Why? Because they have less crew, they are more efficient to maintain.

The RSAF’s aerostat, our big balloon – yesterday, there were some discussions about floating balloons – let me just say that when SAF floats balloons, it is there to stay, and it is meant to be up. Our aerostat achieves continuous aerial surveillance, just like a plane with radar, but saves about $29 million a year. It is a jolly good idea.

SAF upgrades existing equipment, where possible, to avoid buying new platforms. Our first instinct is not to buy, but to upgrade. And that is what we did for our whole fleet of Leopard Tanks and Chinooks.

We must harness new technologies, as Dr Teo Ho Pin pointed out. Because even if you chose to give us more money in exchange for manpower, we cannot do it. We just do not have the manpower. We recognise that as an inherent constraint, and we started to deal with it, I think, probably one or even two decades ago, in terms of redesigning our systems, in terms of maintaining our systems. Let me give Members some examples.

Dr Teo Ho Pin mentioned that the older ORNS, those in their 60s, would not be so adept. We are not planning to induct them into our Armed Forces, because their liability ends at 40 to 50. Thank you for the idea, Dr Teo. We will consider it.

Of those who are in our Order of Battle (ORBAT), there are some examples. Instead of soldiers conducting surveillance from observation towers, the Army will build unmanned towers to watch over Jurong Island and the surrounding waters. Those towers will watch 24/7 in all-weather conditions, and it will reduce the total number of soldiers required by a third – a significant number.

RSAF is moving towards a Smart Airbase. What is a Smart Airbase? For example, it will use drones to perform runway damage assessment. Members will notice, for instance, at the recent Air Show, it is beautiful to watch, and people clap in glee, but after the fighter planes take off or land, we have to do visual checks to make sure that the commercial planes can come in, too. Same thing for each take-off; you have to do visual checks because even small debris make a difference.

We can use drones to perform runway damage assessment and respond to other intruding drones. We want to make it more efficient by leveraging automation for aircraft maintenance and using sensors for pre- and post-flight aircraft checks. I think it is achievable and we are doing trials to achieve that kind of Smart Airbase.

The Navy is integrating data from all agencies. The maritime environment is a different environment from the air. There are lots of moving parts and different agencies. We want to gather data from all sources, construct better algorithms to detect anomalies and then pre-empt, say, possible terrorist threats from the sea.

For surveillance, we want to use cameras with smart sensors with automated surveillance. We do not need a man in the loop, or a man in every loop, to say, “this vessel is behaving in a different way from other vessels”. So, just alert you, so that when the man in the loop makes a decision, you respond. We do not need manned vessels for some scenarios. Unmanned vessels will soon be used for patrols and underwater surveys. All these give us hope that we are moving towards an SAF that is just as, or even more effective, but can use less manpower.

We agree wholeheartedly with Members here who pointed out that we cannot do this alone. We have to join other partners or other countries. Mr Jessica Tan, Mr Low Thia Khiang, Mr Pritam Singh, thank you for affirming that what we decided as ADMM Chair this year is important. We said that there will be three areas: first, counterterrorism; second, confidence-building measures and code for unplanned encounters at sea and in the air; and third, chemical, biological and radiological threats. That was really precipitated because of the Korean Peninsula instability, and most countries are not prepared for those kinds of threats.

As Members pointed out rightly, CUES has been accepted. What is the possibility of a CUES for air being accepted, is a tough one, I agree. But if we can do it across 18 nations, I think that will send a very strong signal. So, we will try. We will at least start the ball rolling and see whether we can get consensus from the 10 ASEAN countries and the Plus-eight. I think we can achieve that. I think among some of them, they will be more willing. And if we can talk to them and say, "This works for you", I think we would have done a significant contribution.

Some asked about the exercise, Mr Low and Mr Pritam Singh as well, whether we are practising CUES. Indeed, we are. We do not even have to wait for the China-ASEAN Maritime Exercise. We are going to do it with all 18 ADMM-Plus countries – practise CUES, because they have agreed collectively to adopt CUES and practise it in our exercise in 2019. And in 2018, I suspect, this year, with China, it may be in undisputed waters, so there would not be a chance to practise it. The Member asked whether the meetings of the ADMM-Plus will be yearly. Indeed, it will, from this year onwards. They have agreed and Singapore will be the first to host these annual meetings.

With the US, we have achieved new milestones. Both the Republic of Singapore Navy (RSN) and RSAF conducted bilateral exercises in Guam for the first time last year, flying with US Pacific Air Forces (PACAF) and exercising across the full spectrum of anti-submarine, anti-surface and anti-air warfare with the US Navy.

With China, we will build on the positive momentum from the visit of Chinese Defence Minister Chang Wanquan early this year and we have deepened ties with the People's Liberation Army (PLA). With India, we concluded a Navy Bilateral Agreement and we will increase maritime security cooperation between our countries, especially around the Andaman Seas. For Australia, we will construct SAF training facilities in Queensland, due to begin in 2019.

We will build strong partnerships, but all of us here know that, ultimately, we, Singaporeans, must be accountable for our own defence. When we are dependent on others, we have failed. Our NSmen will be better trained through new facilities in the SAFTI City and in Australia. With continued investments steady, year after year, which Members of this House approve, SAF will continue its transformation onwards.

The next-Gen SAF will use game-changing technologies and new fighting concepts. On the ground, they will operate unmanned, autonomous systems, to multiply their forces. Our skies will be better protected with advanced weapons systems. We recently added our Aérospatiale Terminale (ASTER)-30, which are here. Our territorial waters and sea lines of communications will be better secured with manned and unmanned vessels alike. That is the vision. That is what we are investing in, and we will be equipped to deal with ever-evolving cyber threats.

Mr Chairman, let me conclude. That Members of this House voted for Budget 2018 yesterday, sends a strong signal to our own people and to the world. In doing so, we have kept faith with what we were entrusted with by previous generations – a strong SAF able to ensure our independence and protect Singaporeans. But that a strong SAF was not built or maintained by happenstance or even good intentions. For each generation, it will require a conscious, deliberate decision. It will require sacrifices to commit resources and of themselves.

Previous generations took that hard decision. As Mr Lee Kuan Yew said to SAF officers at a Temasek Society dinner in 2012, “From the day we started, I knew that we needed a strong SAF and I believe that still remains today. Without a strong SAF, there is no economic future, there is no security.”

The Members of this House who voted for the Budget yesterday united themselves with this belief and the resolve of the Pioneer Generation. If each generation reaffirms and renews its commitment, then a strong SAF will continue to keep Singapore safe and sovereign with a secure future for another generation. [Applause.]

Mr Chairman, since its introduction in 1967, NS had served as the backbone of the SAF and has been instrumental in deterring potential adversaries and establishing the bedrock of peace for Singapore over the last 50 years. Potential adversaries know that when they want to attack Singapore, it is a fight against all of us.

The political atmospherics in the region have waxed and waned over the years. As we now enjoy warm and friendly relations with all our ASEAN partners, some segments of our society have questioned if NS remains relevant in this context. After all, the probability of conventional conflict is perceived to be remote.

Recognising that NS is premised on the need for national defence, can MINDEF elaborate on the role that NS plays in Singapore today and its importance, given prevailing geopolitical conditions?

Sir, across the years, SAF has drawn heavily on Singapore’s human capital in its pursuit of a strong military force capable of protecting Singapore. However, several trends in recent years have threatened the size of the SAF's enlistment pool, chief among them, the trend of our falling birth rate and the ageing population.

As Members of this House will recall, the Minister for Defence noted last year that SAF will see a one-third reduction in manpower supply by 2030. In view of these impending manpower constraints, what are the manpower challenges faced by SAF? What measures are being taken to ensure that these manpower challenges will not compromise our overall military capability?

Like many of my male colleagues in this House, we have fond memories of NS, and NS is the rite of passage for all Singaporean males, regardless of background, and only in NS we get to mix around with peers of different backgrounds, different status and come together and work together. So, besides preparing our young people, our young men, for operations, it also has an important role in enhancing social cohesion. NS, in that sense, is an integral part of our society. And what is SAF doing to build more common experiences and improve cohesion between NSFs from different walks of life during their service?

Mr Chairman, despite our best efforts, our attempts to increase the birth rate have a limited impact so far. This has serious implications for our economy and also our security. As we look to the future, manpower challenges will mean that each individual that serves NS becomes increasingly precious, both during service and after. During service, each individual will now have a bigger role to play as the total number of servicemen and women decline due to smaller cohorts.

After service, we need to ensure that all Singaporeans are equipped to thrive in the new world of work. We will struggle as a nation if all our males are two years behind their counterparts in the acquisition of skills they need in order to survive in the workplace of the future. I would like to ask the Minister how is MINDEF embracing new technologies to maximise the potential of each NSman, both during and after service.

The Vocational Interest Initiative allows enlistees’ interests to be taken into consideration when determining the NS vocation that they are suitable to be deployed to. This aims to offer a more positive, fulfilling and meaningful NS experience for our servicemen. At the same time, it encourages our NSmen to take greater ownership of their roles, responsibilities and contributions in ensuring Singapore's safety and security.

I checked out the Central Manpower Base (CMPB) website and found that the videos and handbook on the 33 NS vocations in SAF, the Singapore Police Force (SPF) and the Singapore Civil Defence Force (SCDF) very useful. This will provide greater insights for our young pre-enlistees to make more informed choices. I note that the final posting results will look at factors, such as physical fitness, suitability to perform tasks and operational requirements, besides the interests of the new enlistees. This is rightfully so.

I would like to ask MINDEF to elaborate on the rationale for this initiative, and if there are other changes to how SAF deploys its NSmen.

Since the launch of the initiative last November, I believe there have been two or three cohorts being enlisted, and one having completed their Basic Military Training (BMT). Can MINDEF share any early findings of this initiative? How have the interests been matched, and the response of the enlistees?

Mr Chairman, according to CSA, there had been a spate of cyberattacks in Singapore over the past year. Investigations revealed that some attackers employed sophisticated anti-detection and infection techniques to access information through cyber backdoors. Some of these advanced persistent threats (APTs) had malware signatures that are unknown, even to the anti-malware databases.

We have all heard from Defence Minister Ng Eng Hen just earlier. He spoke about the threats that are posed by malware emails. So, these developments demonstrate that cyber threats to Singapore are becoming more sophisticated, making detection and forensic investigation more difficult. Notably, some of these sophisticated cyberattacks appeared to be targeted at public organisations in an effort to gain access to critical information and data. Not surprisingly, MINDEF was targeted by deliberate hacking attempts on its Internet-facing system early last year.

Given our small population and geographical size, SAF relies heavily on digitisation and networking in our capabilities to achieve a military edge against our potential adversaries. However, these military networks and systems and the sensitive information they contain make them an attractive target of cyberattacks. As part of the ongoing efforts to strengthen its cyber defence capabilities, MINDEF recently announced the launch of a Cyber NSF Scheme to tap on cyber talent with the requisite aptitude and skills of the NSF pool. Can MINDEF provide and update on the recently announced Cyber NSF Scheme? How sustainable will the scheme be, given the much talked about reduction in the population size, thus a smaller number of NSFs available?

Mr Chairman, technology is evolving at an accelerating pace and has the potential to make our lives better in ways that would have been unimaginable just a few years ago. We can now effortlessly try how much physical activities we do, where we go and whom we interact with. The data that we capture can be mined to provide insights into almost every aspect of human life.

This technology can be used to improve the effectiveness and safety of NS training or, at the same time, helping individual serviceman to develop useful skills. For example, advances in virtual reality and related fields enable us to create new types of training. Individual troops can practise critical skills in a safe environment and commanders can try out different strategies to see which one will work best. The potential to apply technology to NS is limited only by our imagination and our willingness to take the lead. We can improve training outcomes whilst reducing risks to our servicemen.

I would like to ask the Minister how SAF is leveraging technology to enhance the NS experience.

Mr Chairman, since its introduction in 1967, NS has remained the cornerstone of Singapore's defence, providing the security and stability which underpin our shared prosperity. To date, more than a million have served NS and NS has become deeply entrenched as a national institution.

Going forward, it is important that this institution continues to enjoy the strong support of every Singaporean in every household and in every community. Over the past four years, the family and community council within the Advisory Council on Community Relations in Defence (ACCORD) had developed initiatives to strengthen community support for total defence and NS. Some of these initiatives include (a) the engagement of new citizens and Permanent Residents (PRs) to understand the need for defence and support the NS institution; and (b) the partnership with the Singapore Armed Forces Reservists Association (SAFRA) and the People's Association (PA) to encourage retailers to offer discounts to NSmen in recognition of their service to the nation. We can do more.

Military service is tough and the sacrifices are real for our NSmen who spent time away from their careers and loved ones in defence of our nation. What else can MINDEF and ACCORD do to educate the public on the sacrifices of our NSmen and galvanise community support for these men serving our country?

Mr Chairman, my cut is on MINDEF’s efforts to recognise the contributions of our NSmen and the initiatives undertaken by ACCORD to increase the public’s awareness of NS.

SAF underwrites Singapore’s sovereignty upon which all Singaporeans can live in peace, and secure in the knowledge that Singapore is well-protected. NS is a duty for all male Singaporeans and second-generation PRs. It is the cornerstone of Singapore’s defence and security. For many Singaporean males, NS is a rite of passage at about 18 years of age, where he leaves the comforts of home and takes on the commitment of defending his country, his family and friends. After the initial two years of full-time commitment in NS, the NSF transitions to ORNS duties as NSmen, and this is about 10 years in length. During this time, our NSmen will have to juggle career and family commitments as well as their national defence duties. Therefore, it would be right and necessary for us to recognise the contributions of our NSmen.

Just last year, we celebrated NS50, where the whole nation came together to thank successive generations of NSmen for their contributions to our nation’s defence over the years. Singaporeans from all walks of life took the opportunity to recommit themselves to play their part to protect our Independence, values and way of life. I am sure that many of our NSmen, past and present, benefited from the various NS50 promotions and offers, generously supported by the private sector as well, who understood the importance of national defence.

Yet, this widespread show of support across the public and private spheres should not be a one-off or should not be limited to milestone years alone. Our NSmen must continue to know that their sacrifices to serve NS are appreciated and not taken for granted. Hence, I would like to ask the Minister how has MINDEF continued in its efforts to recognise the contributions of our NSmen.

ACCORD was established by MINDEF in 1984 as a channel for the community to provide feedback on issues concerning Singapore’s defence. In 2014, it was restructured to comprise the ACCORD main council and three sub-councils covering Employer and Business Council, Family and Community, and Educational Institutions. I would like to ask the Minister to provide an update on the initiatives implemented by ACCORD.

Sir, NSFs undergo various types of military and skills training while serving their NS. Many of these knowledge and skills, such as leadership, planning, command and control or safety measures, are applicable when the NSmen join the workforce.

Sir, can I ask the Minister to provide an update as to what is MINDEF doing to enable skills and knowledge acquired by our NSmen during NS to be recognised beyond NS?

Sir, the importance of defence in Singapore has become more critical rather than less over the years. Defence spending must keep up with Singapore's partnerships and match the growing sophisticated needs of our advanced economy. Like all areas of Government, defence spending will be put under pressure in years to come. In anticipation of this, defence spending must keep up with the state of the economy. This includes the area of manpower use and productivity.

Sir, in our defence, one of the five pillars of total defence calls for having a strong and resilient economy. Strength and resilience of an economy are based on, among other things, a workforce which embraces productive and efficient work practices and habits. The natural starting point for promoting and understanding how individual contribution to workforce performance is part of economic defence, is full-time NS.

Full-time NS is a major milestone in our young people's lives, often the most significant initial encounter with a regulated work environment. Even for those who deferred entry into the labour force after NS because of studies or other pursuits, the concentrated immersion in full-time NS work cultures so early in their adulthood exerts a major influence over the attitudes of young people. Intensity and pervasiveness of the experience present a valuable opportunity for inculcating a productivity-driven work ethic in NSFs.

In addition to ensuring that the skills picked up in NS are relevant to the needs of the economy, what can be done to take advantage of opportunities to assess and improve the individual productivity performance of NSFs? It will help to ensure the sacrifice of time and effort made by young people in full-time NS have a continuing relevance to their working lives.

I have three questions for the Minister: what is the role of full-time NS in shaping the work ethic of young Singaporeans? What does NS contribute to promoting an awareness of the importance of productivity performance and efficiency at both the individual and organisational levels? And, finally, what are the possibilities for coordinating regimentation in the Armed Forces with productivity and efficiency?

Chairman, Total Defence was launched in 1984 to galvanise every Singaporean to play our part in building a strong, secure and cohesive nation that is resilient against any crises. Singaporeans are familiar with the five pillars as we commemorate Total Defence Day on 15 February every year.

Today, we are confronted with emerging threats, such as disinformation campaigns, that can be more insidious because they target the hearts and minds of our people over the long run and are harder to detect. These are aimed at breaking societies from within by exploiting our social fault lines to weaken national unity, erode trust in Government and diminish confidence in the nation's future.

At the same time, Singapore society is also evolving. Over the years, we have seen more inter-ethnic and transnational marriages. This growing diversity may give rise to new potential fault lines and make it more difficult for us to maintain social harmony.

Compounding the challenge, our population is also increasingly reliant on social media to get news and information on current affairs, making them more susceptible to misinformation online. Against this backdrop, Singapore's approach of Total Defence has proven to be a remarkable presence and also provided a bulwark against such insidious threats.

Can MINDEF provide an update on its 2018 Total Defence campaign and how we intend to address these threats, going forward?

Chairman, on most objective measures, we are living in the best of times in history. With declining poverty and hunger and falling rates of death due to disease and war, yet countries are also faced with growing threats to their economies and their ways of life. These threats can take many forms. The most obvious and high profile are, of course, terrorist attacks, such as 9-11 or the London bombings. But just as dangerous to the long-term health of the nation are most subtle forms of threats, such as the ramping up of social and societal tensions through propaganda and fake news.

We have seen that even mature western democracies are not immune to this form of cyber-psycho terrorism with foreign activists leveraging social media to provoke both sides on issues that divide society, such as racism, inequality or gun rights. These threats are not easy to define or detect and even more difficult to fight.

I would like to ask the Minister: how is MINDEF working with all the relevant agencies to ensure that we continue to enhance our social cohesion and psychological resilience?

We are proud of our multiracial, multi-religious global society here in Singapore. We may worship different gods and practise different cultures and traditions, but we live in peace and harmony in this compact Little Red Dot.

Our status as a global hub has helped grow our economy and added to the vibrancy of our nation. However, we are also aware that we cannot take all these for granted.

If we look overseas, we can see how race, religion and immigration issues can affect not only society and politics but also result in terrorism and violence. In Southeast Asia, the return of ISIS foreign fighters to their homeland has resulted in the persistent threat of radicalisation in our region. These terrorists will use race and religion as a “socio-weapon” to tear people apart.

In Singapore, we are not immune to the threat of terrorism, and we know that there are people in recent years that have been self-radicalised. In Europe and the US, we have witnessed the manifestations of globalisation backlash in US politics, Brexit and the rise of anti-immigration parties in Europe.

As these threats exploit the fault lines in our increasingly diverse society to divide our people, what can we, as Singaporeans, do as part of Total Defence to strengthen social cohesiveness and affirm multiculturalism to fortify our defences against the scourge of terrorism and in the face of other external pressures?

Chairman, the world today is increasingly interconnected. The Business Times reported that 70% of Singaporeans are active social media users on the go, more than double the global average. This means that Singaporeans are also more easily exposed to false news and pressures found online, which could tear our social fabric.

The threat of fake news is pervasive and insidious. On social media, articles and stories usually go viral and get circulated because they are sensational or they corroborate one's own beliefs and views. However, it is not always possible to verify the truth of stories being circulated. This makes it fertile grounds for the spreading of fake news.

To make matters worse, fake news is also usually profitable. Revenues generated online are usually correlated to eyeballs and circulation, not the truth or quality of the stories involved. One just needs to share sensational stories without having to pay journalists to actually investigate and report the truth. Thus, in an environment where purveyors can make profits by keeping costs low and getting wide circulation, traditional media companies that do real investigation and report real news, which is usually less sensational, are suffering, with readerships dropping for traditional news providers.

This is a double whammy because it means that fake news ends up circulating, while real news requires paid subscriptions, is suffering and struggles to counteract the fake news.

An even more worrying development is the allegation that state actors may also be involved in using fake news to influence the politics of other countries. Our Foreign Minister had very kindly confirmed that this was the case in Singapore as well, but he was probably too diplomatic to name the state actors involved.

The most shocking of the recent allegations, in fact, occurred in the greatest power, the US, where allegations are being made in some quarters in the US that there was Russian interference in their elections. It is already common ground that there was a great deal of fake news being circulated in the last US elections, with candidates on both sides being victims of fake news stories.

Is MINDEF concerned about this threat of fake news for our defence, particularly where it comes from state actors? If so, what steps does MINDEF intend to take to combat threats from fake news?

Sir, the SAF Volunteer Corps (SAFVC) allows Singaporeans from diverse backgrounds who are not eligible for NS to also make contributions to Singapore's defence. Its main mission is to serve in assigned roles alongside SAF NSFs, NSmen and regulars to enhance the security of Singapore. SAFVC is also a great opportunity for citizens from diverse backgrounds to meet, train and bond together. This contributes to a more resilient Singapore.

Sir, can MINDEF provide an update on the SAFVC recruitment status and also share with us the types of voluntary work assigned to SAFVC members?

Mr Chairman, the world today is characterised by the rise of the Internet and globalisation. Our youths will grow up and mature in an environment that will grant them access to an immense variety of views and experiences.

While this opens up many opportunities for education and a deeper appreciation for diversity, it will also likely reshape their sense of identity in new ways. In particular, their understanding of what it means to be “Singaporean” will no longer be strongly defined only by an understanding of Singapore’s history, culture and our vulnerabilities.

However, Singaporeans’ commitment towards defending our country rests on whether we possess a good understanding of our vulnerabilities and an ingrained conviction of the importance of what we are defending. While it is important to instill this understanding in our youths from a young age, growing global interconnectivity and the ensuing potential dilution of the “Singapore Identity” will continue to pose a strong challenge to our efforts.

I note that MINDEF has used many innovative and interesting ways to engage the public of different age groups on Total Defence, for example, N.E.mation! video competition, "Guardians of the City" strategy card game, Total Defence (TD) Badge Programme, TD Puzzle, colouring activity and documentary-drama series "It Will Never Happen Here".

How has MINDEF’s experience been these years and how could MINDEF reach out better to youths today to deepen their understanding of Total Defence and encourage them to play their part?

Sir, our SAF has come a long way. It has moved on from just being a defence imperative to being a cultural institution, which is a part of Singapore's national identity.